COMMON FISCAL POLICY

The purpose of this article is to demonstrate that a common fiscal policy, designed to support the euro currency, has some significant drawbacks. The greatest danger is the possibility of leveling the tax burden in all countries. This leveling of the tax is to the disadvantage of countries in Easter...

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Bibliographic Details
Main Author: Gabriel Mursa
Format: Article
Language:English
Published: Alexandru Ioan Cuza University of Iasi 2014-08-01
Series:CES Working Papers
Subjects:
Online Access:http://www.ceswp.uaic.ro/articles/CESWP2014_VI2A_MUR.pdf
Description
Summary:The purpose of this article is to demonstrate that a common fiscal policy, designed to support the euro currency, has some significant drawbacks. The greatest danger is the possibility of leveling the tax burden in all countries. This leveling of the tax is to the disadvantage of countries in Eastern Europe, in principle, countries poorly endowed with capital, that use a lax fiscal policy (Romania, Bulgaria, etc.) to attract foreign investment from rich countries of the European Union. In addition, common fiscal policy can lead to a higher degree of centralization of budgetary expenditures in the European Union.
ISSN:2067-7693